Canaccord Is Said to Propose $97,600 for Research Under MiFIDBy
Canaccord Genuity Group Inc.’s sell-side unit in the U.K. has proposed fees of as much as 75,000 pounds ($97,600) a year to clients for full access to the firm’s investment research and analysts as part of upcoming MiFID II regulations, according to a person with knowledge of the matter.
The indicative prices circulated in the last month include dedicated sales and analyst calls and customized research requests, the person said, asking not to be identified because the information is private. The financial services firm may also offer a pared-down service for 10,000 pounds that only gives access to the research portal, with additional events and conferences arranged for 500 pounds to 1,500 pounds each, the person said.
A spokeswoman for Toronto-based Canaccord Genuity did not respond to calls and emails seeking comment.
The European Union’s MiFID II regime will force asset managers to unbundle trading commissions from investment research, which had regularly been provided for free to clients. Asset managers in Europe and the U.S. will cut more than $300 million from external research budgets after the regulations come into force in January, according to consulting firm Greenwich Associates.
AllianceBernstein Holding LP’s sell-side unit has quoted smaller firms about $150,000 a year for two or more fund managers to access analyst reports and other basic services. Credit Agricole SA and Nomura Holdings Inc. have quoted about 120,000 euros a year for premium packages.
— With assistance by Sarah Jones